The National Information Technology Development Agency (NITDA) has accused social media giants X (formerly known as Twitter) and TikTok of failing to meet tax filing requirements in Nigeria.
This accusation comes in the wake of a new report titled “Analysis of Compliance with Laws and Misinformation Management by Social Media Platforms in Nigeria.”
In the report, NITDA claims that platforms like Google, LinkedIn, and Meta have met their tax obligations in line with Nigeria’s regulatory framework. However, X and TikTok are said to have neglected their tax filings.
The report highlights that while all major platforms, including X and TikTok, have registered with Nigeria’s Corporate Affairs Commission (CAC), their compliance with other mandates has been inconsistent.
One of the key regulations outlined in the Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries (CoP for ICSP/II), introduced in September 2022, is the requirement for platforms to submit annual compliance reports to NITDA.
However, both X and TikTok have not complied with this aspect of the Code, despite it being a crucial part of the framework. These reports are intended to ensure that platforms follow Nigeria’s rules, particularly when it comes to moderating harmful content and promoting transparency.
The Code of Practice was designed to address the potential harms of social media while ensuring that platforms remain accountable for their actions. It was created in collaboration with the Nigerian Communications Commission (NCC) and the National Broadcasting Commission (NBC).
Platforms That Have Complied
While TikTok and X have failed in some areas, other platforms such as Google, LinkedIn, and Meta have largely adhered to the regulatory requirements set by NITDA. These companies have not only filed their taxes but have also submitted the necessary compliance reports and met other standards outlined in the Code.
The Code also mandates platforms to establish physical offices in Nigeria, appoint liaison officers to engage with the government, and employ certified fact-checkers to manage misinformation. Platforms that do not meet these criteria face sanctions.
A Call for Greater Responsibility
The Nigerian government has been clear in its desire for social media companies to take greater responsibility for content shared within the country. The report from NITDA underscores the importance of platforms in maintaining a safe and responsible online environment.
“By enforcing compliance, NITDA seeks to create a transparent and responsible digital ecosystem in Nigeria,” the report reads.
The report also draws attention to the ongoing fight against harmful online content. This includes tackling fake accounts, child pornography, hate speech, and misinformation, which have plagued Nigerian social media users in recent years.
In 2023, social media platforms carried out significant content moderation efforts. For example, Google deactivated over 9.6 million accounts for violations of its policies. LinkedIn followed with 691,596 deactivations, while X removed more than 1.1 million accounts, and TikTok took down 599,776 accounts.
Additionally, platforms removed millions of posts that violated their community guidelines. Google led the pack, removing over 59 million posts. TikTok deleted about 4.5 million posts, while X removed 168,500.
The overall goal, according to NITDA, is to strike a balance between ensuring that social media remains a tool for positive engagement and protecting users from harmful or illegal content.
Tax Non-Compliance as a Serious Issue
Tax compliance is a critical part of Nigeria’s strategy to ensure that global digital platforms contribute to the country’s economy. NITDA’s accusations against X and TikTok reflect concerns about these companies’ responsibility to meet their tax obligations like other businesses operating in the country.
Failure to comply with tax laws could lead to more stringent oversight and potential penalties for these platforms. For now, NITDA is urging these companies to prioritize their responsibilities and become more transparent in their operations.
Moving Forward
In response to these findings, NITDA has called on X, TikTok, and other platforms to prioritize compliance with all Nigerian regulations. The agency stressed that adherence to the Code is essential for building trust, ensuring safety, and curbing the misuse of digital platforms for harmful purposes.
As Nigeria continues to strengthen its digital ecosystem, the government remains firm in its stance on social media accountability. NITDA’s call for greater compliance with tax and content moderation standards is a step towards creating a safer and more responsible online environment for all Nigerians.
The Road Ahead for Social Media in Nigeria
With the rise of social media in Nigeria, it is clear that platforms like X and TikTok must meet their legal obligations to foster a safer and more accountable digital space. Failure to comply could lead to tighter regulations and penalties as the Nigerian government seeks to balance digital innovation with public safety.
For now, the spotlight remains on X and TikTok to address these compliance gaps and work with NITDA to ensure that their operations align with the country’s legal framework.
